Buying any commercial vehicle
is a business decision, so the way you pay for it must
be based on what is best for your business in terms
of cash flow and tax benefits. Scotts are able to put
you in touch with the best people to help you in your
financing decisions and have good relationships with
independent brokers.
On the right you will find a finance calculator, which
will give you a rough idea about how much you might
be expected to pay under a finance scheme. All circumstances
are different, so the results are purely to help you
in your buying decision and should be used as a guideline
for information purposes only.
Below is an overview of the two main finance options
for commercial vehicles:
Hire Purchase
Deposit in advance, plus the VAT for the entire vehicle
Repayment period from 36 up to 60 months
Monthly repayments are VAT free
VAT deposit reclaimable for VAT registered customers
100% of interest charges can be offset against taxable
profits
Vehicle is an asset and benefits from tax allowances
End of the contact period the vehicle is 100% owned
by you
Finance Lease
Deposit in advance, plus the VAT on the deposit
Repayment period from 36 up to 60 months
Monthly repayments incur VAT, which can be reclaimed
if VAT registered
Rentals are 100% allowable against taxable profits
Facility can have a balloon profile to reduce monthly
repayments
Vehicle sold or part-exchanged at end of contract.
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